Silver (XAG) Forecast: Can Bulls Regain Momentum After the Rally Stalls at $52.62?

Silver Pushes Higher as Traders Test Pre-Holiday Strength

Spot Silver extended its upward move on Wednesday, supported by light pre-holiday volume that allowed buyers to probe overhead levels without significant resistance.

The metal briefly pushed to $52.62 before sellers forced a retreat toward $52.29, keeping the trade locked below the last swing top at $52.47. The attempt reflects a market still leaning constructive but lacking the conviction needed for a clean breakout in thin conditions.

At 15:41 GMT, XAG/USD is trading $52.45, up $0.96 or +1.87%.

What’s Driving Interest in Precious Metals This Week?

Broader precious-metal sentiment remains influenced by gold, which firmed earlier on Wednesday as traders responded to a renewed wave of Federal Reserve rate-cut expectations.

Recent U.S. data — including soft retail sales, weaker consumer confidence, and stable producer prices — intensified bets on a December cut, which jumped from roughly 30% last week to more than 80%. Gold rallied more than 1% on the shift, helping reinforce interest across the metals space, including silver.

Major banks remain constructive into year-end. UBS expects continued upside, while Deutsche Bank raised its 2026 gold outlook to $4450 and highlighted ongoing central-bank demand — an important sentiment driver for silver, given the metals’ historical correlation and tendency to move together during periods of monetary policy repricing.

Traders Track Fed Signals and Treasury Market Behavior

Treasury yields were marginally firmer, with the 10-year sitting near 4.02% and the 2-year around 3.485%. Jobless claims at 216,000 — the lowest since April — offered a modest counterweight to easing-policy expectations, though not enough to materially alter market sentiment. Fed leadership speculation also caught traders’ attention, as Kevin Hassett emerged as a favorite. His reputation for supporting lower rates reinforces the broader expectation of policy easing, indirectly supporting silver by extending the bullish tone across metals.

Does the Dollar’s Rebound Matter for Silver?

The Dollar Index bounced off support levels and reclaimed its 200-day measure, although the move unfolded on light holiday-thinned volume. A more sustained dollar recovery could complicate upside attempts for both gold and silver, but the lack of strong participation suggests traders are not yet treating the rebound as a meaningful headwind.

Silver Outlook: Can Bulls Retake the Intraday High?

Silver’s short-term outlook hinges on whether buyers can clear the intraday high at $52.62 with conviction. A confirmed breakout opens the door toward the multi-year high at $54.49. On the downside, the market carries support at $51.07, $50.02, $49.97, and $48.93, with the 50-day moving average at $48.87 acting as the primary trend gauge.

Given the broader metals strength, rate-cut expectations, and the absence of meaningful selling pressure, the near-term read leans bullish, provided silver holds above its immediate support layers and maintains pressure against $52.47.

More Information in our Economic Calendar.